Valuation and Volatility Factors Were Leading Indicators out of a Bear Mark

The first two months of 2023 registered a 3.7% price return on the S&P 500, after a negative -18.1% return in 2022. The uncertainties around inflation outlook and the geopolitical environment still overshadow the near to medium term future of the equity market. For some longer-term perspective, we studied the market shifts in Alpha Factor Library (AFL) performances during the l...